Summary Strategy and Organisation - Exam content week 5

Strategy and organization: week 5: organization and context (context of
strategy)
General information from lectures
Keywords
 Context, formal and informal institutions
 Institutional hazardous, CD, contextual distance
 Simple versus complex context
 Stable versus dynamic context
 Horizontal versus vertical MNEs
 Global versus local integration and responsiveness
 Fit, alignment, configurations
 Matrix, de-centralization, hierarchy SBU-HQ
Context: configuration approaches
Strategic management is about aligning various organizational and
environmental elements so that they form consistent grouping. Relevant
elements: strategy, technology, structure, processes, type of environment etc.
Groupings that show perfect alignment (fit) → configurations (likely to perform
best)
Contingency approach: ‘It all depends”… structure should reflect the structure
of the organization
Configuration approach: elements of organizational design logically configure
into internal consistent groupings that match the situation → there is more
(theory) to the “it all depends” approach
Entry mode choices:

, Strategic alliances (contractual and equity)